Keaton thermal coal production up 45%, poised for next value growth phase
JOHANNESBURG (miningweekly.com) – JSE-listed coal junior Keaton Energy increased thermal coal production from its Vanggatfontein colliery, in Mpumalanga, by 45% to 2.2-million tons during the year ended March 31, the company announced on Wednesday.
Keaton also increased metallurgical coal production from Vanggatfontein by 2% to 400 000 t and sales of metallurgical coal were up 49% to 97 635 t from 65 661 t previously, in line with its mine plan.
“The 2014 financial year saw Vanggatfontein reach operational steady state and, importantly, deliver on results,” Keaton CEO Mandi Glad said, adding that this colliery now formed the backbone of the soon to be enlarged Vanggatfontein-Moabsvelden operation, which would be the core of the growing Keaton group of companies.
Meanwhile, during the period under review, anthracite dispatched to domestic and metallurgical markets from Keaton’s Vaalkrantz anthracite colliery, in KwaZulu-Natal, declined by 7% to 303 837 t.
The company said the Vaalkrantz operation continued to suffer from extremely difficult mining conditions in the West Alfred section of the mine, which limited production.
“With its short remaining life, operating conditions at Vaalkrantz continue to be extremely challenging. Our management and staff, however, have risen to these challenges as we look to opening our new mines in the area,” Glad commented.
She added that with Vanggatfontein having reached steady-state production and generating the expected results, the completion of the ASX-Listed Xceed Resources acquisition in February – which allowed for Vanggatfontein to be expanded – and the management of Vaalkrantz’s difficult mining conditions, the company was poised for the next phase of value growth.
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